Lawmakers Backing Union Calls to Prevent Mass Furloughs this Fall

Lawmakers Backing Union Calls to Prevent Mass Furloughs this Fall

A bipartisan group of lawmakers are supporting a plan that would prevent the mass furloughs of tens of thousands of airline workers this fall by extending current payroll assistance into 2021.

Congressman Peter A. DeFazio, who serves as the Chair of the House Committee on Transportation and Infrastructure, circulated a letter to several key legislators last week, seeking support for an extension of the $32 billion Payroll Support Program. The program allowed airlines access to billions of dollars in aid and loans in exchange for keeping employees on the payroll. Unions such as the International Association of Machinists and Aerospace Workers have strongly pushed for such an extension, in order to prevent mass furloughs of airline workers this fall.

About 950,000 aviation sector workers received funding from the program, which covered the costs of their paychecks in the absence of airline profits caused by the pandemic. The program is due to run out on October 1.

Major airlines such as United and American are warning that they will eliminate an estimated 60,000 positions within hours of the expiration of the program. Non-union positions at airlines, including management and administrative positions, and non-union ramp and ticket counter agents have already been the targets of job and hour cuts. Delta and JetBlue have already cut thousands of workers despite having accepted payroll assistance money that they promised to spend on wages. United cut thousands of non-union administrative positions after also slashing severance pay. Court action by non-union managers has yet to scale back  losses.

The letter, sent to lawmakers from both parties, calls for an extension of the Payroll Support Program, which would prevent mass furloughs and layoffs until at least March 2021. In addition to House Transportation and Infrastructure Chairman Peter A. DeFazio, (D-Ore.), the letter was co-signed by Subcommittee on Aviation Chairman Rick Larsen, (D-Wash). It has won the support of Republican Members of the Transportation Committee, Rep. Rodney Davis (R-Ill.), and John Katko (R-NY).

Other lawmakers supporting the extension include Reps. Sharice Davids, D-Kan., Karen Bass, D-Calif., and Brian Fitzpatrick, R-Pa.

IAMAW General Vice President, Sito Pantoja and other labor leaders signed a joint letter calling for a renewal of the Paycheck Support Program earlier this summer. That letter read, in part, “Aviation workers account for 5 percent of the nation’s GDP. Should October 1 arrive without extending the PSP grant job program mass layoffs are inevitable, as airline executives have acknowledged. Hundreds of thousands of workers will lose their jobs and health insurance—not only in aviation but across our entire economy.”

“Further, the industry would lose a large portion of the experienced and credentialed workforce that will be critical to bringing the sector and the broader economy back to prosperity once the COVID-19 crisis is over. Airline industry employment cannot simply be put back together overnight, and mass layoffs will do great damage to the sector, with potentially irrevocable consequences for Members of the International Association of Machinists and Aerospace Workers Union have banded together into a group called the Machinists Non-Partisan Political League (IAM MNPL) to call for legislation that would help airline workers and passengers. The group is asking airline workers to contact their lawmakers and ask them to support an extension of the Payroll Support Program and prevent mass furloughs starting October 1.

“We need this bill. This is a pro-airline paycheck bill,” said Dave Roderick, MNPL District 141 Legislative Director. “The Paycheck Support Program will help frontline airline workers weather this storm. We need everyone out supporting this.”

Airline workers who want to send a letter right now may do so HERE.

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San Francisco Local Union Activists Offer Education, Preparations for This Fall

San Francisco Local Union Activists Offer Education, Preparations for This Fall

SFO Local 1781 and 1782 Conduct 3 Days of Briefings to Help Members Prepare 

Chris Lusk, IAM District 141 Educator and Vice President of 1781, briefs the membership about efforts their local is taking to prepare for the potential of large-scale labor that major airlines are planning for this fall.

Members discussed the potential impact that impending furloughs are likely to have on airline workers in the region. IAMAW  Union activists also helped educate each other on how best to prepare, and shared ideas for how other local lodges can hold similar meetings for their members, as well. 

 

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WARN Act Communication from United

WARN Act Communication from United

To IAM members at United Airlines:

Yesterday, as required by the Worker Adjustment and Retraining Notification (WARN) Act, United Airlines informed the IAM that 12,645 District 141-represented workers could be furloughed as soon as October 1, 2020. It is important to understand that not all workers who will receive notices of potential furlough under the WARN Act are certain to be laid off. The WARN Act requires that workers be notified at least 60 days in advance of a possible layoff. Employees working in NY, NJ, CA and IL will receive individual WARN notices which were mailed by United Airlines yesterday.   

The IAM-United contracts outline the exact process of a reduction in force. When a reduction in force does take place, it will be our contracts that guide the process.

IAM District 141 representatives have been in ongoing discussions with United management to develop voluntary programs to lessen the impact of furloughs. 

The IAM is also working to extend the Payroll Support Program (PSP) component of the CARES Act to March 31, 2021. If we are successful, there would be no layoffs until at least that date.

Please click here to contact your elected officials to demand the PSP extension.

Sisters and Brothers, we are in very unstable and worrisome times. While there are certainly more passengers flying today than in late March, we are still at only 25 percent of 2019 passenger levels. And due to a lack of a coordinated national response to the coronavirus pandemic, rising infection rates in the US and several state-mandated quarantines, there is great risk that a significant rebound in air travel demand will not occur soon enough. As I have said before, we must prepare for furloughs this fall.

Please know that the IAM will do all that we can to lessen the impact of furloughs. We will continue to work with the Company and any developments will be immediately reported to the membership.

Please visit our DL141 website at IAM141.org, or our official District Facebook page for updates and accurate information. There are some on social media who continue to trade in fearmongering and outright misinformation. It is unfortunate that some of our own are preying on our Sisters and Brothers’ emotions during this most stressful time for their own twisted and misguided political reasons. 

We have faced tough challenges as a union before. Each time we have been tested, our common bonds and solidarity have been the driving principles that have led us forward and made us stronger. We must not allow fear, petty differences or inflammatory rhetoric to divide us.

This is a time for unity, not division.


In Solidarity,

Michael G. Klemm
President and Directing General Chairman
District 141, International Association of Machinists and Aerospace Workers

Please print and post on all IAMAW bulletin boards.
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Paying Dues on Company Leave (COLA) and Furlough

Paying Dues on Company Leave (COLA) and Furlough

/// En Español

 

Question: How do I pay my dues while I’m out on Company Offered Leave?

Short Answer: Contact your Local Lodge Secretary-Treasurer. Your Secretary-Treasurer is the best person to talk to about all things related to union finances. Your Secretary-Treasurer can also help you find out if you qualify for special rates, automatic payroll deductions, and other assistance. (You have to be out of work from the first of the month to the last day of the month in order to get reduced fees. Again, talk to your Secretary-Treasurer for more information.)

News flash: not everyone loves paying dues. But with everyone pitching in, we have been able to do some remarkable things. Before the pandemic hit, we raised our wages and protected the health care and pensions of thousands of airline workers. These wins have led to stronger bargaining positions for thousands of additional airline workers. 

Importantly, we’ve helped create safety measures and policies that keep us and our passengers safe. We have not suffered involuntary furloughs. We haven’t experienced the kinds of deep pay cuts and benefits reductions that non-union workers have faced. Unlike non-union employees, we have earned ourselves critical time to prepare for whatever our companies plan to do. 

Non-dues paying employees at other airlines, meanwhile, have been the victims of mass layoffs, pay and benefit cuts, and worse. 

Protecting the advantages we have isn’t easy, and it isn’t cheap. No single employee can possibly cover the costs alone; workers simply must work as a group in order to stand a chance.

To put it bluntly: if we weren’t paying dues, we would have been furloughed or laid off long ago. 

A typical grievance that goes into arbitration might cost airline workers (as a union) $10,000 to litigate. That’s $10k for each instance where we need to enforce our contracts. Negotiating a union contract with a major airline is another expensive project that requires strong financial support. Additionally, workers need to pay people for the work they do. A typical union salary for a local lodge president in the IAMAW is around $100 per month. Union members who work for their lodge need reimbursements for the work they do on “lost-time.” These payments to union activists are fair and necessary. There are also utility bills, rent costs and other expenses that have to be met.

Maintaining your good standing with the IAMAW is required to participate in union activities such as voting in union elections, running for office, benefiting from free college and other programs and discounts, and attending union meetings and conferences.

To find out how you can remain current, just check with your Local Lodge Secretary-Treasurer. They can look at your specific case and take care of all the back-end work for you. You may also qualify for a reduced rate while you aren’t on payroll. Your local Secretary-Treasurer can take care of that for you too. If you need help contacting your Secretary-Treasurer, just ask any local lodge officer or committee member, or send a message to IAMAW District 141. 

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There are billionaires who want to use any excuse to take away your paycheck and pension. There are billion-dollar reasons to take away your ability to work at all during the COVID outbreak. But, if we stick together as a union, we can keep what we have, negotiate fairly when needed, and survive much better than we could as separated employees just trying to hold on to our jobs and futures.

 

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Airlines Carry Half a Million Passengers in One Day For First Time Since March

Airlines Carry Half a Million Passengers in One Day For First Time Since March

More than half a million air travelers passed through TSA checkpoints on Thursday, the highest number since mid-March. The Transportation and Security Administration (TSA) reported 502,209 screenings at US airports.

Airlines hit the milestone as over 400,000 passengers took to the skies on three separate days in the preceding week, in the clearest sign yet that air travel is beginning to slowly recover. 

While this number is less than a quarter of what is normal for this time of year, it represents a marked improvement over the lowest point on April 14, when only 87,534 travelers were screened at TSA checkpoints.  

The airline and travel industries are facing a perfect storm of suppressed demand because of COVID-related restrictions on in-person gatherings, high unemployment, and a negative feedback loop, where airlines cannot serve cities without higher levels of customer demand. 

To attract more passengers, airlines have aggressively cut fares and fees. These moves have brought in more travelers, but have also reduced revenue.  The addition of thousands of new passengers willing to fly brings airlines closer to financially breaking even. 

Airlines are growing again, slowly.

Despite the hardships, airline stocks are on the rebound, and insiders expect the industry might reach passenger loads as high as one million travelers a day by the end of July.

In a press release earlier this month, American Airlines announced it was planning to increase flight activity to 55% of normal capacity in July. The carrier added it is planning to increase its lucrative international routes back to 20% of 2019 levels.

United’s plans for July include restoring non-stop service in over 140 domestic routes and the airline will add flights to Europe and several cities in Asia, along with destinations in Latin America and the Caribbean. 

Hawaiian Airlines suspended most inter-island flights and has operated just one daily flight to Los Angeles since March 26 when Hawaii state officials instituted a mandatory 14-day quarantine for arriving passengers. The airline is planning to increase flight capacity by 18% when the quarantine mandate for inter-island travel is lifted on June 16. The quarantine for all passengers arriving from out-of-state will be in effect through July 31.  

Spirit Airlines is expected to triple the number of flights it operates at its home base in Fort Lauderdale (FLL). They expect to operate 70% of their schedule in July and are going ahead with plans to expand international destinations.

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All this is great news for anxious airline employees whose jobs are secure until September 30 thanks to payroll protection funding allocated by the CARES Act. Every airline is planning to have a much smaller workforce after that date due to uncertainty about whether the number of coronavirus cases can be contained until there is an effective vaccine or treatment, which is expected to take a year, possibly longer. Hundreds of airline employees have already taken some type of voluntary unpaid leave of absence, and the companies are unveiling a variety of early retirement programs. 

The Summer 2020 travel season will be very different for passengers and airline employees, but the industry as a whole hopes the recovery will be better and faster than forecasts show. 

 

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Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: “Reducing workers’ hours without their consent reduces workers’ paychecks in the same way that reducing workers’ rate of pay would.”

 

This week, Senator Bob Casey (D-PA) called on Treasury Secretary Steve Mnuchin to issue clear guidance to airlines and industry lobbyists stating that cutting the pay and benefits of airline workers violates the CARES Act, even if those cuts come by way of furloughing full-time workers to part-time. Senator Casey is a member of the Senate Committee on Finance, which played a major role in drafting the bill. 

Senator Casey said the clear intent of the CARES Act, which delivered billions of taxpayer dollars to airlines, was “specifically to protect the jobs and livelihoods of workers in the airline industry,” and that airlines could not reduce the pay of their workers after accepting relief funds.  Further, Senator Casey said in the letter that reducing full-time workers to part-time reduces their pay and benefits, despite leaving pay rates intact. 

“I write to express my concern that multiple air carriers have threatened to or are currently involuntarily reducing the hours of employees despite receiving payroll support under the Coronavirus Aid, Relief and Economic Security (CARES) Act,” Senator Casey said in the letter. “In passing this legislation, Congress made clear its intention that any air carrier receiving assistance must agree to maintain payroll and not cut employee compensation. I urge you to immediately issue guidance that makes clear that unilateral and involuntary reductions in employee hours are prohibited under the CARES Act.” 

Senator Casey also sent letters to the CEOs of United, jetBlue, and Delta, and to Airlines for America, the lead lobbying group for US air carriers, putting industry executives and lobbyists on notice about the importance of following the law and respecting workers.  

A growing number of lawmakers involved in creating the CARES Act have written to the CEOs of major airlines following a scheme by United Airlines executives to take billions in relief funds intended to cover payrolls – and then cut payrolls while keeping the money. United Executive Vice President Greg Hart tried to defend the move and said the furloughs weren’t really pay cuts because pay rates would remain the same. Senator Casey, who has a legislative record promoting economic security for working families, showed little patience for such word games. 

“This is in clear violation of Congress’ intent and should not be undertaken by any air carriers accepting federal assistance,” Senator Casey said. 

“Congress’ intent that air carriers use this assistance to fully protect workers’ compensation and employment was clear,” he wrote. 

IAMAW District Legislative Director David Roderick praised the actions of Senator Casey and other lawmakers who have come forward in defense of working families in the airline industry over the past two months. “Senator Casey is a true friend for airline workers. He’s been a trusted ally and strong voice for airline safety and the fair treatment of airline employees and passengers for years.” 

Read the full statement by Senator Casey Here >>

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Lawmakers need to know that we appreciate their help. If you are a constituent of Senator Bob Casey, please take a second to let him know that our union values his assist.

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What do YOU Think?

Do you feel that furloughs before October 1st are a violation of the CARES Act…

…even if they are only furloughing full-time agents to part-time?